Germany's industrial production down in July amid supply chain disruptions

ANKARA

Industrial production in Germany fell 0.3% month-on-month in July, following a revised 0.8% increase in June, and compared to forecasts of a 0.5% drop, the country’s statistical authority revealed on Wednesday.

The drop is reflecting the shortage of intermediate products, as well as the war-driven supply chain distortions and the impact of the COVID-19 crisis.

In July, production in industry excluding energy and construction was down by 1%, compared with June, according to the Federal Statistical Office, or Destatis.

Declines in production were seen in all main groupings.

"The production of consumer goods fell by 2.4%, capital goods production by 0.8% and intermediate goods production by 0.6%. The decrease in the consumer goods sector was mainly due to the development of non-durable goods production, which went down by 3%," Destatis said.

Outside industry, energy production was up by 2.8% and production in construction rose 1.4%.

Industrial production went down 1.1% year-on-year.